New-York tribune., 1887-05-15
cT To AND DENVER BONDS
oo,r ne PURCHASE OF THE SECURITIES.

ruru THE PRICES ROSE AND THE DikECioNs "N
DIsGUsTED.
The Pacific Railway Commisson had ions 49, ,s,t,
....,on Yesterday morning, and after mat to' w s-.
monv Of three important witnesses In regard 10 ' g,
=, ,he Kansas Pacific and what was known ~ ',.s o
" 'ae I'm, 90 % Law Goulds connection therewnn
.hs commission obtained little additional i"i'
,,on The first of these Witnesses .a
John H. Haar broker OF BroadsI' ~"o VIZ IA nan
having done soma large desliogs IN Oh ' 80, rrov
vsr bonds before the consolidation. Ho ui a.. .om.
,ha, n ad hecome Of his books they were arounu "
"na' u ~, ho didn't keep a set Of books anyway
w. arsd ~ he had not had number OF iransaouon'
- r. could he thought he might have nso u~ne-
,,ons With the firm Of W. Connor 20. III ioa no "
Going business at No. 46 Waitst NO Ano" .,n. az
md Denver WELL and had been over IL many .n, unes
,h.a aate He remembered the foreclosure ana reorsSn
u', 80 ,bs fair market value Of the bonds In
$3.50 he could not recollect anybody pu'
himself who bought at that 'n.' ~
,o-.,7s he bought the bonds oI 'no
two diyisions-the ST. Joseph and Denver anu tue nor"
sas and Nebraska-at various prices from oo 70 o2
be had 100000 He then kept them "nile' seie
when be needed money at from l2A9 70 20 anu o
hoard Of the poo made up in New for the purpose
- ceiling these bonds to W. E. Connor & Co. at 4o Ihis
as more than they could have been sold Tor al tue
time ON the market In 1879 the oonus "os
nm The price might have been 90 just peioio
the consolidation but he did not think IL Wou4u ha'o
been possible to sell 100000 OF the bonds al lna' P
as there was not enough demand for them From VIVA.
be knew of the road and its earnings ne snouiu
think the actual value would be about o.
Charles W Hassler from 1869 to 1884 OF the nrm OF
uassler A. Co brokers No Wall-st said that In the
summer Of 1873 meeting OF the directors was neiu "
their Office TO for the foreclosure Oh tue o
Joseph and Denver bonds He then one OF the direct
ors and one OF the trustees Of the land grant, ana ms
firm was the transfer agents OF the stock ana
bonds In 1879 the agency was transferred
10 the Farmers Loan and Trust Company. de had
bought and sold the St Joseph and Denver bonus III
ls757677 they could be bought at from to cents on
the dollar He purchased $4,000 In bonds or the west
ern Division, which there was gig per cent assess
ment $780, and he did not think ne pad over ~ luz
any of the bonds he bought.
In regard to his transactions with Mr. Gould, the VIII
ness said that In fall OF 1878 Mr. Bond the president
of the lne informed the Board OF Directors thst Mr..
Gould would take the whole amount OF bonds conroed
by them and the various trust companies at ten cents on
the dollar They talked it and decided not to sell;
the offer Increased to twenty cents but witness
SeS o n March 17s Mr. Bond said
Mr. Gould you'd take the whole at forty cents: I,..
we're in favor Of selling at that price The price Of
course included the trimmings Inc witness solu 70
Mr Gonld 600 OF them. and there were other di
rectors who sold to him He personally delivered
$4,000 Mr.. Gould. who handed them to MI Moroslni
10 be counted and aferward sent his check for the
amount. The witness did not know Connor Co IN me
transaction. The prico advanced so rapidly aIttI he
directors had sold, that they were dsgusted Win tue
transaction. A.
testify that the increased value was que 70 tne
fact that the twenty-five miles OF branch line from.
Hastings Grand Island had been opened up, but inc
witness still maintained that the Wall Street operatlohs
had more 10 do with IL ,.A,-x -
Commissioner Psttison wanted It explained to him how
there could be such wide difference between
Wall Street prices and actual values and wit
ness smilingly compiled. He SAID: my experiences
that desirous OF advancing the price OF sock ne
controls bids for it in the market and gets others TO DID
soon the lambs come in. and when good price Is
reached the lambs feeced." 49,
Willard called and told the history OF MS
recevershp OF Kansas Pacific When he was appointed
the road was in wreched condition. he said He was
party negotiations which resulted In the poong
agreement under which he the chairman OF the COM
mtee appointed hold the securities. He had DO per
sona interest in the pool and merely represented Ine
first mortgage creditors -, =. x,,,,.,
Commissioner Anderson pointed out that Mt siilarus
name figured Ia the agreement the holder OF lOVoo
shares stock In the Kansas Pacific and witness repe1
thai his name signei 70 IL and stated that ne
never had such securities He put nothing into the poor
and he took nothing An interest was onered 10 l
but he declined II the ground OF his of1cla
connection with the road. Mr. Gould eventually bought
out the interest St Louis parties TO the pool and
tbs remaining OF Kansas Pacific then taken
out at 12l2 cents, the price named IN the poor
and Dillon. As TO whether the consolidation was
an advantage TO the Union Pacific he could not say but
was certainly good thing for the Kansas Pscc 10 %
taken under the wing OF the Union Pacific.
The commission will continue the taking OF testimony
Tuesday morning.